In a landmark move to make higher education more accessible, the Government of India has launched the PM Vidyalakshmi Scheme, designed to provide financial support to deserving students across the country. This scheme aims to break down economic barriers by offering collateral-free and guarantor-free education loans, thus enabling talented students from economically weaker sections to pursue their academic dreams without financial stress. The scheme offers loans of up to ₹10 lakh, with various benefits such as interest subsidies and credit guarantees to ease the financial burden.
PM Vidyalakshmi Scheme: Key Highlights
| Feature | Details |
|---|---|
| Scheme Name | PM Vidyalakshmi Scheme |
| Launched By | Government of India |
| Objective | Provide financial support for higher education |
| Target Group | Students from economically weaker sections |
| Loan Amount | Up to ₹10 lakh |
| Interest Subsidy | 3% during the moratorium period for eligible students |
| Credit Guarantee | 75% for loans up to ₹7.5 lakh |
| Application Process | Through the PM-Vidyalakshmi portal, easy and online |
| Official Website | https://www.vidyalakshmi.co.in |
Also Read: Atal Pension Yojana Scheme
What is the PM Vidyalakshmi Scheme?
The PM Vidyalakshmi Scheme was introduced to ensure that every deserving student in India has access to higher education without financial constraints. This scheme offers loans of up to ₹10 lakh to cover tuition fees, examination fees, and other expenses related to education. With a government-backed 75% credit guarantee on loans up to ₹7.5 lakh, banks are encouraged to provide loans without requiring collateral or guarantors, making it easier for students from lower-income families to get financial assistance.
Objectives and Benefits of the PM Vidyalakshmi Scheme
The main goal of the PM Vidyalakshmi Scheme is to promote inclusive education by providing easy access to funds for students, particularly those from disadvantaged backgrounds. Here are the primary benefits of this scheme:
- Financial Inclusion for Students: Ensures that students from all backgrounds can pursue higher education without financial barriers.
- Easy Access to Education Loans: Offers an online platform, PM-Vidyalakshmi, where students can apply for loans and track their application status.
- Interest Subsidy: Provides a 3% interest subsidy during the moratorium period (course duration plus one year) for students from families with an annual income of up to ₹8 lakh.
- Collateral-Free Loans: Loans of up to ₹7.5 lakh are provided without the need for collateral or guarantors, with a 75% credit guarantee from the government.
- Wide Coverage: The scheme covers a variety of courses across recognized institutions in India and abroad, making it accessible for students pursuing diverse fields.
Eligibility Criteria for PM Vidyalakshmi Scheme
To qualify for the PM Vidyalakshmi Scheme, students need to meet specific eligibility requirements:
- Course Admission: Students must have secured admission in an approved course in a recognized institution in India or abroad.
- Age Limit: There is no specific age limit for this scheme; however, applicants must meet the age criteria of the respective banks.
- Income Criteria for Interest Subsidy: Students from families with an annual income of up to ₹8 lakh are eligible for a 3% interest subsidy during the moratorium period.
- Education Level: This scheme covers both undergraduate and postgraduate programs, as well as professional and technical courses.
Required Documents for PM Vidyalakshmi Scheme Application
Students need to provide the following documents to apply for a loan under the PM Vidyalakshmi Scheme:
- Proof of Admission: Admission letter or enrollment certificate from a recognized institution.
- Income Certificate: Proof of family income to determine eligibility for the interest subsidy.
- Academic Transcripts: Marksheets and certificates of previously completed courses.
- Identity Proof: Aadhar Card, Passport, Voter ID, or other valid ID.
- Bank Details: Bank account information for loan disbursement.
Steps to Apply for PM Vidyalakshmi Scheme
- Visit the PM-Vidyalakshmi Portal: Go to https://www.vidyalakshmi.co.in and access the PM Vidyalakshmi Scheme section.
- Register: Create a user account by entering personal details, email, and mobile number.
- Fill Out the Common Education Loan Application Form (CELAF): Provide all necessary details, including academic, personal, and loan requirements.
- Select Preferred Banks: Choose up to three banks to submit your loan application.
- Submit and Track: Submit the application and use the portal to track its status.
- Bank Verification: Banks will verify the details provided and process the loan.
How to Track PM Vidyalakshmi Loan Status
Students can track their application status online by logging into their account on the PM-Vidyalakshmi portal. They can also receive SMS and email updates about their application status.
Interest Subsidy and Credit Guarantee
The PM Vidyalakshmi Scheme provides a significant advantage through its interest subsidy and credit guarantee features:
- Interest Subsidy: Students with a family income of up to ₹8 lakh are eligible for a 3% subsidy during the moratorium period (course duration + 1 year). This helps reduce the financial burden on students.
- Credit Guarantee: The government provides a 75% guarantee for loans up to ₹7.5 lakh. This means students can get loans without collateral or a guarantor, making it easier to access the funds they need for education.
PM Vidyalakshmi Scheme: Eligible Institutions
The scheme is applicable for students admitted to recognized institutions in India and abroad for a range of courses including undergraduate, postgraduate, and technical programs. It covers institutions approved by regulatory bodies such as AICTE, UGC, and other accreditation agencies.